Purchasing Card Policies and Procedures

Transcription

1 Purchasing Card Policies and Procedures I. PURPOSE To set forth the Policies and Procedures for the New Jersey City University Purchasing Card Program. II. POLICY 1. INTRODUCTION The New Jersey City University Purchasing Card Program has been established to provide a convenient means with which to make purchases and, at the same time, reduce the costs associated with initiating and paying for those purchases. The Purchasing Department is responsible for maintaining the framework of this program. They will determine that Cardholder, Card Administrator, Independent Reviewer and Department Contact positions are filled as described in paragraph 2, Definitions. These four areas of responsibility have been defined within each department to assist in this management effort. It is important to understand that these four areas of responsibility do not necessarily equate to four separate individuals within the department. It is permissible for one individual to be assigned one or more of these responsibilities as defined in these Policies and Procedures. The ultimate decision as to how each of these responsibilities is assigned will be made within each department. 2. DEFINITIONS A. Purchasing Card: A charge card issued to a permanent employee of New Jersey City University for the purpose of making authorized purchases on the University's behalf. The University will issue payment for charges made with the Purchasing Card. B. Cardholder: Permanent University employee whose name appears on the Purchasing Card and is accountable for all charges made with that card. C. Card Administrator: University employee(s) within each department responsible for verifying online that all charges against the Cardholder's account are backed up by support documentation and that the documentation is retained within the department. Card Administrators have the ability to allocate individual charges. Cardholders may be their own Card Administrators and a Card Administrator may oversee more than one Cardholder account depending on how Purchasing Card Policy & Procedures (Revision 2) 1

2 the department elects to manage its accounts. A department may have more than one Card Administrator. D. Independent Reviewer: University employee(s) within each department responsible for sampling and testing Purchasing Card transactions to verify that they are appropriate and supported by adequate documentation. To be effective, the Independent Reviewer must be in a position to objectively question any and all Cardholder purchases. Cardholders may not be their own Independent Reviewers and the Independent Reviewer should not be subordinate with a reporting line to the Cardholder. A department may have more than one Independent Reviewer. E. Department Contact: University employee(s) within each department responsible for receiving and disseminating Purchase Card information within their department and for relaying Purchase Card information from within their department to the Program Administrator. It is recommended that each department have only one Department Contact. F. Program Administrator: University Purchasing department responsible for administering the Procurement Card Program for the University and acting as the main contact between the University and the Bank. G. Transaction/Charge Limit: A dollar limitation of purchasing authority assigned to the Cardholder for each total charge made with the Purchasing Card. This amount must not exceed $ Departments may establish lower limits on a per Cardholder basis. Transaction limit for the President, Vice Presidents and Deans must not exceed $1,000. H. Monthly Spending Limit: A dollar limitation of purchasing authority assigned to the Cardholder for the total of all charges made during each monthly billing cycle. I. Default Account: The University account code assigned to an individual Cardholder's Purchasing Card. Only one Default Account can be assigned to any one Purchasing Card and all charges made with the Purchasing Card will be posted into that Default Account unless those charges are reallocated. (See Section II.13) J. Support Documentation: A merchant produced or non-university document that records the relevant details for each item purchased including quantities, amounts, a description of what was purchased, the total charge amount and the merchant's name and address (e.g. sales receipt, original invoice, packing slip, credit receipt, etc.). Purchasing Card Policy & Procedures (Revision 2) 2

3 3. RECEIVING THE PURCHASING CARD A. A complete Cardholder Enrollment Form must be submitted for each prospective Cardholder. This form must be signed by the administrator for the default account shown on the form and then forwarded to the Program Administrator. (See Attachment A) B. All prospective Cardholders must sign a Cardholder Agreement Form to be eligible to receive a Purchasing Card. (See Attachment B) 4. AUTHORIZED CARD USE A. Cardholders are authorized to use the Purchasing Card to purchase any merchandise or services required as a function of their duties at the University with the exception of the following: Items for Personal Use Items for Non-University Purposes Cash Advances Food and Beverage including Alcoholic Beverages Travel Related Expenses Entertainment Recreation Contracting Gasoline (To be purchased with University Fleet Card) Motorized Vehicles Financial Services Any purchases prohibited by University policy or not related to University business. B. The President, Vice Presidents and Deans are also authorized to use the their card for the following: Food and Beverage excluding Alcoholic Beverages Travel Related Expenses C. Only the Cardholder whose name is embossed on the Purchasing Card is authorized to use the card and is responsible for ensuring that all charges made with the card are in compliance with these Policies and Procedures. D. The total value of any one charge made with the Purchasing Card may not exceed the single transaction limit stipulated on the Cardholder's Enrollment Form. Purchasing Card Policy & Procedures (Revision 2) 3

4 5. UNAUTHORIZED AND/OR INAPPROPRIATE CARD USE A. The Purchasing Card must never be used to purchase items for personal use or for non-university purposes, even if the Cardholder intends to reimburse the university. B. A Cardholder who makes an unauthorized purchase with the Purchasing Card, as defined in Section II.4, or uses the Purchasing Card in an inappropriate manner will be subject to disciplinary action including possible card cancellation, termination of employment at New Jersey City University and criminal prosecution. 6. MAKING A PURCHASE WITH THE PURCHASING CARD A. The Cardholder should purchase from state contract vendors and preferred merchants whenever possible to take advantage of pricing and terms negotiated on a University wise contract basis. B. Confirm that the selected merchant accepts VISA. If not, choose another vendor or submit a requisition to Purchasing so that the purchase can be make via a Purchase Order. In either case, inform the Program Administrator, via the Department Contract, about the fact that the original merchant did not accept VISA. C. When making purchases in person, the Cardholder must sign the charge receipt and retain the customer copy. The Cardholder should verify that either the charge receipt or sales receipt complies with the requirements for support documentation set forth in Section II.2.J. D. When making non-in person purchases (e.g. via telephone, computer, mail order, etc.) Cardholders should give the merchant the account number embossed on their card and direct the merchant to include the following on the shipping label and/or packing slip: Cardholder name and phone number Department name Complete campus delivery address including building name and room number The words "VISA Purchase" E. Cardholders are encouraged to receive their own shipments; however, if someone on Campus will be receiving a shipment on the Cardholder's behalf (e.g. Central Receiving), the Cardholder should notify them in advance. Regardless of who receives the shipment, the Cardholder is responsible for obtaining all documentation (packing slips, mail order form copies, etc.) related to the purchase Purchasing Card Policy & Procedures (Revision 2) 4

5 and verifying that the documentation complies with the requirements for support documentation set forth in Section II.2.J. 7. MERCHANDISE RETURNS AND EXCHANGES A. The Cardholder is responsible for contacting the merchant when merchandise purchased with the Purchasing Card is not acceptable (incorrect, damaged, defective, etc.) and arranging a return for credit or an exchange. B. If merchandise is returned for credit, the Cardholder is responsible for obtaining a credit receipt from the merchant and retaining that receipt with the support documentation for that purchase. Receiving cash or checks to resolve a credit is prohibited. C. If merchandise is to be exchanged, the Cardholder is responsible for returning the merchandise to the merchant and obtaining a replacement as soon as possible. Documentation showing the proper resolution of the exchange is to be retained with the support documentation for that purchase. 8. RECORD RETENTION A. Cardholder Responsibility: The Cardholder is responsible for obtaining purchase documentation from the merchant (sales receipt, packing slip, etc.) to support all purchases made with the Purchasing Card and verifying that the documentation complies with the requirements for support documentation set forth in Section II.2.J Note: In addition to obtaining the documentation, it is recommended that the Cardholder also record the details of each purchase in a transaction log. The transaction log may be a printout of the on-line transactions for the day. B. Card Administrator Responsibility: It is the card Administrator's responsibility to assure that all support documentation and the corresponding Cardholder Statement of Account are retained within the department per the following retention schedule: i. University Funded Purchases: Retain for no less than 7 years after the year in which the documentation is received. ii. Grant Funded Purchases: Retain until notification is received from the Grant Accounting Office to do otherwise. 9. CARDHOLDER VERIFICATION OF CHARGES A. Cardholders are accountable for all charges made with their Purchasing Card(s) and are responsible for checking all transactions against the corresponding support documentation to verify their accuracy and propriety. This check should be done regularly using the on-line transaction review system. Purchasing Card Policy & Procedures (Revision 2) 5

6 Note: If the Cardholder is also the Card Administrator, accountability for each charge should be recorded at this time using the online transaction review system as described in Section II.11. B. If a particular charge or credit does not appear on-line, it should be checked against future on-line transaction information. If the charge or credit does not appear within 30 days after the original charge was made, the Cardholder must notify the Program Administrator. C. If the Cardholder disputes a charge, the nature of the dispute and the final resolution must be documented. This documentation must be retained with the Statement of Account on which the disputed charge appears. (See Section II.10) D. After all transactions have been checked, the Cardholder must sign his or her Statement of Account. The signed statement and all supporting documentation must be forwarded to the Card Administrator. 10. CARDHOLDER CHARGE DISPUTE RESOLUTION In the case of a disputed charge, the Cardholder must try to resolve the dispute directly with the merchant. If the dispute cannot be resolved, the Cardholder must complete a Cardholder Dispute Form (See Attachment C) within 60 days of the date noted on the Statement which lists the disputed charge and forward the completed form to the Bank. 11. CARD ADMINISTRATOR VERIFICATION OF CARDHOLDER CHARGES A. The Card Administrator is responsible for reviewing each transaction using the on-line transaction system. Cardholders will perform this function if they are Card Administrators. B. For a charge to be Supported there must be adequate support documentation available so that the Card Administrator can ascertain that the purchase is valid and the Cardholder is accountable for that purchase. C. For there to be a Discrepancy associated with a charge, any one or more of the following situations may exist: Insufficient support documentation. One or more of the criteria for authorized card use set forth in Section II.4 have not been met. The Cardholder disputes the charge. (See Section II.10) D. All discrepancies must be investigated and resolved. The disposition of each discrepancy must be documented and retained with the Support Documentation and/or Statement of Account. Cardholders are accountable for all discrepancies. Purchasing Card Policy & Procedures (Revision 2) 6

7 Note: If a discrepancy cannot be resolved, the Independent Reviewer must be notified. E. After all transaction have been reviewed, the Card Administrator must forward the support documentation and Statement of Account to the Independent Reviewer. 12. THE INDEPENDENT REVIEW OF CARDHOLDER TRANSACTIONS A. The transactions on the Cardholder's Statement of Account must be reviewed monthly by an independent non-subordinate, as defined in Section II.2.D, to ensure compliance with these Policies and Procedures. The Independent Reviewer should test a sample of transactions from each statement to verify that each of those transactions is supported by adequate documentation and meets all the criteria for authorized card use set forth in Section II.4. Questionable transactions (e.g. purchases of items for personal use or for non-university purposes, etc.) should be especially scrutinized. The number of transactions reviewed should be sufficient to ensure that the review is effective. Review results must be documented by the Independent Reviewer and retained with the support documentation and corresponding statement. B. For questionable transactions or transactions that lack adequate support documentation, the Independent Reviewer must contact the Cardholder to obtain an explanation, supporting documentation and/or reimbursement. Questionable charges for which satisfactory explanations or documentation cannot be obtained will be deemed unauthorized and/or inappropriate. (See Sections II.4 and II.5) C. If during the review process, serious irregularities are detected, the Independent Reviewer must notify the department head and the Program Administrator. D. After the Independent review process is complete the Cardholder Statement of Account and corresponding support documentation are to be filed within the department per the record retention requirements set forth in Section II.8.B. 13. CHARGE ALLOCATION TO NON-DEFAULT ACCOUNTS A. For any given charge, the Card Administrator has the option to perform an on line reallocation from the default account. If the reallocation option is not exercised by the last business day of the month in which the billing cycle ends, the total amount of the charge will be posted into the default account. Reallocation at this point will require a Journal Voucher. Note: Reallocation to Revenue or Salary accounts is not permitted. B. If a particular charge reallocation involves grant accounts, and the Card Purchasing Card Policy & Procedures (Revision 2) 7

8 Administrator is not sure what the grant allows, they should consult the Grants Accountant. 14. PURCHASING CARD SECURITY A. It is the Cardholder's responsibility to safeguard the Purchasing Card and Purchasing Card account number at all times. B. Cardholders must keep their Purchasing Cards in a secure location at all times. C. Cardholders must not allow anyone else to use their Purchasing Cards and/or Purchasing Card account numbers. D. Cardholders must not post their Purchasing Card account numbers where others can easily see them. 15. LOST, STOLEN OR DAMAGED PURCHASING CARD A. If a Purchasing Card is lost, stolen or damaged, the Cardholder must notify the bank immediately. B. Cardholders must notify the Program Administrator if their cards are lost, stolen or damaged within 24 hours after reporting the incident to the Bank. C. After the above notification procedures have been completed, a new Purchasing Card will be issued to the Cardholder by the Program Administrator. D. A Purchasing Card that is found after it has been reported lost or stolen must be destroyed by cutting it in half. The same procedure applies if a card is damaged. Both card halves must be forwarded to the Program Administrator. 16. CARDHOLDER ACCOUNT MAINTENANCE Whenever any of the information contained on a Cardholder's Enrollment Form changes, a Cardholder Account Maintenance Form must be completed and then signed by the administrator for the default account listed on the Cardholder's Enrollment Form. The completed Cardholder Account Maintenance Form is then to be forwarded to the Program Administrator. Note: If the default account is changed via the Cardholder Account Maintenance Form, the administrator for the new account must indicate their approval by signing the form. 17. CARDHOLDER TRANSFER WITHIN THE UNIVERSITY Cardholders who transfer to a new position within the same department and require the use of a Purchasing Card as part of their new duties, should continue to use the same card. Cardholders who no longer require a Purchasing Card in Purchasing Card Policy & Procedures (Revision 2) 8

9 their new position or transfer to a different department must cancel their card per the instructions in Section II CARDHOLDER SEPARATION FROM THE UNIVERSITY Prior to separation from the University, Cardholders must surrender their Purchasing Cards and corresponding support documentation to the Human Resources Office or the Card Administrator. If the Cardholder is the Card Administrator and will not be exiting via the Human Resources Office, the Purchasing Card and support documentation must be surrendered to the Cardholder's immediate supervisor. In either case, the card must be canceled as per the instructions in Section II PURCHASING CARD CANCELLATION III. ATTACHMENTS The Program Administrator must be notified immediately when a Purchasing Card is to be canceled. The card must be destroyed by cutting it in half. Both card halves must be forwarded to the Program Administrator along with a complete Cardholder Account Maintenance Form. A. Attachment A: Cardholder Enrollment Form B. Attachment B: Cardholder Agreement Form C. Attachment C: Cardholder Dispute Form D. Attachment D: Cardholder Account Maintenance Form E. Attachment E: Cardholder Transaction Log IV. RESPONSIBLE AUTHORITY The authority to enforce this policy lies within the Purchasing Department. Any questions may be directed to Purchasing Card Policy & Procedures (Revision 2) 9

10 NEW JERSEY CITY UNIVERSITY PURCHASING CARD CARDHOLDER APPLICATION EMPLOYEE INFORMATION First Name Middle Initial Last Name Business Address City State Zip ( ) Date of Birth (month/year) Business Phone Mother's Maiden Name Social Security Number COMPANY INFORMATION New Jersey City University Company Name 2039 Kennedy Boulevard Company Address Jersey City NJ City State Zip None Monthly Credit Line Single Transaction Limit Cash Amount Department/Cost Center Second Line of Embossing EMPLOYEE/APPROVAL SIGNATURE Signature of Applicant (optional) /Date Signature of Approver/Date RESPONSIBILITY ASSIGNMENTS Card Administrator: SSN: Independent Reviewer (Not Cardholder or Direct Subordinate): Department Contact: Ext.: Fax: Account Administrator Signature Date

11 NEW JERSEY CITY UNIVERSITY PURCHASING CARD CARDHOLDER AGREEMENT I (employee name), as the Cardholder, agree to the following conditions regarding my use of the New Jersey City University Purchasing Card: 1. I understand that by using the Purchasing Card, I will be making financial commitments on behalf of New Jersey City University and that the University will be liable for all charges made with the Purchasing Card. 2. I will strive to obtain the best value for the University when purchasing merchandise and/or services with the Purchasing Card. 3. I agree to use the Purchasing Card only for authorized purchases and in an appropriate manner as defined in the Purchasing Card Program Policies and Procedures. 4. I understand that should I make an unauthorized purchase with the Purchasing Card or use the Purchasing Card in an inappropriate manner, I will be subject to disciplinary action including possible card cancellation, termination of employment at New Jersey City University and criminal prosecution. I further agree that should I make an unauthorized purchase with the Purchasing Card I will reimburse New Jersey City University in full. Should payment in full not be made within fifteen (15) days of the date on which I was notified of my obligation to reimburse the University, I hereby authorize New Jersey City University to deduct from my paycheck the exact amount of my debt provided I have been offered a hearing to contest the charge. Should my employment at the University terminate prior to my reimbursing the University in full, I hereby authorize New Jersey City University to deduct from my final paycheck the exact amount of my debt. I understand that collection agency fees, attorney fees, court costs and other costs and charges necessary for the collection of any amount owed by me and not paid when due are my obligation. 5. I understand that the University will monitor and audit my use of the Purchasing Card. 6. I agree to return the Purchasing Card to an authorized University representative, as defined in the Purchasing Card Policies and Procedures, immediately upon the request of the Purchasing Card Program Administrator or upon my transfer to a different department or upon termination of my employment at New Jersey City University. 7. I have received a copy of the New Jersey City University Purchasing Card Program Policies and Procedures Manual and will abide by all the requirements set forth in said Manual. My signature below indicates that I have read this agreement, understand it and agree to be bound by it, and any subsequent amendments or addenda, for as long as I am a Purchasing Cardholder at New Jersey City University. Employee Signature: Date: Employee Social Security Number (for identification purposes only): Department Name:

12 NEW JERSEY CITY UNIVERSITY CARDHOLDER DISPUTE FORM Dear Cardholder: This form has been forwarded to you for your convenience. If you need additional space, please use the reverse side. Regulations regarding your dispute require that you notify JP Morgan Chase in writing within 60 days of your receipt of the statement reflecting the disputed charge. You are not required to use this form to notify JP Morgan Chase of your dispute, you may write us a separate letter. Attempts should be made with merchant to resolve the dispute before notifying the credit card company. Any response received after the above mentioned time frame may result in JP Morgan Chase's ability to assist you with your dispute. Please fax your dispute notification to: CARDHOLDER NAME: CARD NUMBER: UNIVERSITY PHONE NUMBER: MERCHANT NAME: DATE OF DISPUTED TRANSACTION: DISPUTE TYPE: Incorrect Charge Duplicate Charge Erroneous Charge Credit Not Received Replacement Not Received Other EXPLANATION OF DISPUTE: MERCHANT'S RESPONSE: CARDHOLDER'S SIGNATURE: DATE:

13 NEW JERSEY CITY UNIVERSITY PURCHASING CARD CARDHOLDER ACCOUNT MAINTENANCE REQUEST CARDHOLDER NAME: CARD NUMBER: DATE: TYPE OF REQUEST: Cancel Card Default Account Code Change Department Change** Single Transaction Limit Change Spending Limit Per Cycle Change Cardholder Name Change* Campus Address Change Phone Number Change Card Administrator Change Independent Review Change Department Contact Change *WILL RESULT IN CANCELLATION OF CARD AND ISSUANCE OF A NEW CARD WITH UPDATED INFORMATION. **WILL RESULT IN CANCELLATION OF CARD. A NEW ENROLLEMENT FORM MUST BE SUBMITTED. EXPLANATION OF REQUEST: ACCOUNT ADMINISTRATOR SIGNATURE: DEPARTMENT NAME: RETURN COMPLETED FORM TO THE PURCHASING CARD PROGRAM ADMINISTRATOR